MBC thanks DOF, BIR for quick response on LOA issue

25 November 2025 – The Makati Business Club welcomes the Department of Finance’s guidance to the Bureau of Internal Revenue (BIR) for the immediate suspension of all pending Letters of Authority (LoA) and Mission Orders (MO).

The business community has been complaining about the weaponization of these instruments to squeeze more money out of responsible and legitimate taxpayers, instead of targetting tax evaders.

MBC would like to thank the new Finance Secretary Frederick Go, and the new BIR commissioner Charlito Mendoza for their prompt action on this issue. We also thank the former Finance Secretary Ralph Recto, who met with MBC a few weeks ago, to discuss this issue together with then DOF Under secretary Charles Mendoza, where it was agreed to form a Technical Working Group to address issues like the LoA, Tax refunds as well as the ongoing digitization of the DOF, BIR and BOC.

We applaud Commissioner Mendoza’s vision of making tax administration “predictable, evidence-based, technology-driven, and fair.” He said that “these systems are meant to protect taxpayers while helping the Bureau perform its mandate efficiently.”

We note that the Bureau of Customs (BOC) has likewise suspended the issuance of LoA’s. BOC Commissioner Ariel Nepomuceno met with MBC to discuss the concerns of the business community and we are likewise supporting him in his efforts to reform the Bureau.

MBC would be honored to collaborate with the Department of Finance, the Bureau of Internal Revenue and the Bureau of Customs to achieve real reform towards President Marcos Jr’s overarching directive for an efficient and fair Revenue collection. This is a key component in improving the business environment to attract investors that will generate more jobs and jump start the economy.